Select Language

GBP/USD holds gains near 1.3500 amid BoE cautious stance

Breaking news

GBP/USD holds gains near 1.3500 amid BoE cautious stance

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.10.02 12:40
GBP/USD holds gains near 1.3500 amid BoE cautious stance

update 2025.10.02 12:40

  • GBP/USD appreciates as the Pound Sterling receives support from cautious remarks from BoE officials.
  • BoE policymaker Catherine Mann warned Wednesday that the risk of "higher-for-longer" inflation is materializing, highlighting persistent price pressures.
  • The September US Nonfarm Payrolls report will not be released on Friday, as the Labor Department has temporarily suspended operations.

GBP/USD extends its gains for the fifth consecutive day, trading around 1.3480 during the Asian hours on Thursday. The pair may further appreciate as the Pound Sterling (GBP) receives support from the cautious remarks from the Bank of England (BoE) officials.

BoE policymaker Catherine Mann said Wednesday that the risk of "higher-for-longer" inflation is materializing, emphasizing concerns over persistent price pressures. Mann added that keeping rates on hold is appropriate for the current period.

BoE Deputy Governor Clare Lombardelli warned on Tuesday that officials should not consider inflation shocks as temporary. Lombardelli stated that an increase in inflation could be from a one-off event, but its impact could prove to be more persistent.

The GBP/USD pair also draws support as the US Dollar (USD) struggles after the United States (US) government shutdown on Wednesday, after Congress failed to reach a funding deal. The September US Nonfarm Payrolls (NFP) report will not be released on Friday, as the Labor Department has paused virtually all activity.

The US ADP Employment Change report, released on Wednesday, showed that private sector payrolls declined by 32,000 in September and annual pay growth was up 4.5% year-over-year. This figure followed the 3,000 decrease (revised from a 54,000 increase) reported in August and came in below the market expectation of 50,000.

Pound Sterling FAQs

The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as 'Cable', which accounts for 11% of FX, GBP/JPY, or the 'Dragon' as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).

The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of "price stability" - a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.

Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.

Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.


Date

Created

 : 2025.10.02

Update

Last updated

 : 2025.10.02

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

USD/CAD Price Forecast: Moves above 1.4000, nine-day EMA due to bullish reversal potential

USD/CAD extends its gains for the second successive session, trading around 1.4010 during the European hours on Friday. The technical analysis of the daily chart suggests a potential for a bullish reversal as the pair rebounds from the lower boundary of the ascending channel pattern.
New
update2025.10.24 16:19

GBP/JPY extends gains, nearing 204.00 after upbeat UK Retail Sales

The British Pound has accelerated its uptrend on Friday, reaching fresh two-week highs in the area of 203.90, buoyed by an unexpected increase of September's UK Retail Sales figures, and is on track to close the week with a o0.8% advance, its best weekly performance since July.
New
update2025.10.24 16:17

EUR/USD hovers near recent lows ahead of Eurozone PMIs

EUR/USD shows moderate losses on Friday, trading a few pips above 1.1600 at the time of writing, on track for a 0.4% weekly decline.
New
update2025.10.24 16:07

Forex Today: PMI reports from major economies and US CPI data to lift volatility

Here is what you need to know on Friday, October 24:
New
update2025.10.24 15:57

NZD/USD hovers around 0.5750 as traders adopt caution ahead of US CPI data

NZD/USD moves little after registering gains in the previous session, trading around 0.5750 during the early European hours on Friday.
New
update2025.10.24 15:51

AUD/JPY holds positive ground above 99.00 as trade talks boost investor sentiment

The AUD/JPY cross trades on a stronger note near 99.35 during the early European session on Friday. Hope for a US-China trade deal provides some support to the Australian Dollar (AUD) against the Japanese Yen (JPY).
New
update2025.10.24 15:46

EUR/GBP remains subdued near 0.8700 following UK Retail Sales, awaits PMI data

EUR/GBP inches lower after two days of gains, trading around 0.8710 during the Asian hours on Friday. The currency cross holds losses following the United Kingdom (for September.
New
update2025.10.24 15:11

Crude oil price today: WTI price bearish at European opening

West Texas Intermediate (WTI) Oil price falls on Friday, early in the European session. WTI trades at $61.33 per barrel, down from Thursday's close at $61.60.Brent Oil Exchange Rate (Brent crude) is also shedding ground, trading at $65.04 after its previous daily close at $65.29.
New
update2025.10.24 15:07

FX option expiries for Oct 24 NY cut

FX option expiries for Oct 24 NY cut at 10:00 Eastern Time via DTCC can be found below.
New
update2025.10.24 14:59

USD/INR falls while India's flash PMI growth cools down

The Indian Rupee (INR) trades higher against the US Dollar (USD) on Friday. The USD/INR pair falls to near 87.85 as the Indian Rupee gains amid growing optimism over the trade deal between the United States (US) and India.
New
update2025.10.24 14:58

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel